Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.
Cryptocurrency received its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of encryption is to provide security and safety.
The first cryptocurrency was Bitcoin, which was founded in 2009 and remains the best known today. Much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward.
Positively, blockchain technology could improve the efficiency of international payments and reduce costs of cross-border transfers. In the past, currency traders have been very active on the stock market; however, now they have moved to cryptocurrencies as a more attractive investment. Cryptocurrencies are digital currencies, not traditional money. Unlike traditional currencies, cryptocurrencies aren’t controlled by any central bank or government, but by a distributed network of computers. In addition, they do not print more money like traditional currencies do, so the supply of cryptocurrencies cannot grow beyond the amount of coins in existence. Many countries have issued their own national cryptocurrencies, such as Argentina’s peso, Estonia’s e-krona, and Russia’s rouble. They have been criticized for not using traditional checks and balances mechanisms that control the currencies, and many have suffered from high inflation rates. In 2017, Venezuela launched the petro, which was backed by oil. It has also been criticized for being too centralized and for its lack of transparency. Cryptocurrency trading platforms are online marketplaces where users can buy and sell cryptocurrencies. This type of trading has become popular due to its ease of use and low cost. Many cryptocurrency exchanges are similar to stock markets, with a number of publicly traded companies. However, many cryptocurrencies are independent, meaning they don’t have a company to trade with. Some of these cryptocurrencies are ERC20 tokens, which are based on the Ethereum blockchain.
Positively, cryptocurrencies have helped to create new businesses, allowing people to exchange items or services for these currencies.
Cryptocurrencies are decentralized in that they aren't controlled by any central authority, such as a government, financial institution or company. This means that the currency isn't dependent on any one person or group to run it. As such, cryptocurrencies can't be regulated, censored, or even taxed. However, there is no guarantee that this will last. In fact, several cryptocurrencies are under attack by malicious actors attempting to control the networks or steal funds. A more likely threat is regulation, which could force cryptocurrencies into the real world.
Although cryptocurrencies were originally intended to be used for purchasing goods and services online, the recent surge in value has led to widespread use in the real world. For example, consumers can pay for groceries with cryptocurrency, while a growing number of companies are accepting them as payment for their products and services. As cryptocurrencies become more mainstream, people will probably begin to see them as an everyday form of payment.
Cryptocurrencies can be divided into two broad categories:
Fiat currencies, such as the U.S. dollar, are currencies that are backed by a government or central bank. They're not digital, as they have physical backing that can be converted to digital forms, like cash. Cryptocurrencies such as Bitcoin, Ether, Litecoin and Ripple are also called digital currencies because they use cryptography to protect and secure transactions and ensure that money can't be counterfeited.
Bitcoin is the first cryptocurrency to have achieved significant market dominance and it remains the best known.
Positively, the technology offers a way to transfer money without the need for a bank account. However, there are risks. For instance, the value of cryptocurrencies can fluctuate wildly and it's possible to lose money when you try to sell them. Cryptocurrencies are also anonymous. While they might be used for legitimate transactions, criminals have also adopted this form of currency. To protect your investments, make sure you know what you're buying and be wary of exchanges that promise anonymity.
**Cryptocurrency **has been around for years and the technology that supports it is based on math and code. Cryptography is the branch of computer science that deals with the design and usage of cryptographic tools. This means that it is possible to use mathematics to prove who sent money and where it went. Cryptocurrencies can be broken down into public and private blockchains.
Public blockchains record all transactions in a shared ledger. The idea is that anyone can see this information, which provides the transparency that is the cornerstone of cryptocurrencies. Public blockchains are used for storing and trading cryptocurrencies. Private blockchains, which are kept in the control of one or more companies, are used for securing and managing transactions between individuals.
Cryptocurrency transactions are recorded in a public ledger called a blockchain. It's a digital database that records each transaction. The blockchain uses cryptography to ensure that only the right people can access it. The ledger is shared among many computers. It's not stored on one machine, so it’s impossible for a hacker to steal the information.
Congratulations @bdhealth! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):
Your next target is to reach 50 comments.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out the last post from @hivebuzz:
Support the HiveBuzz project. Vote for our proposal!
Thank you for the info!
You're welcome @bdhealth